How to make the best offer on property?
If you’re buying your dream home, your first home, or your holiday home, it is always a special feeling to find that one house that ticks all the boxes for you! After the excitement of finding the one comes the reality of making an offer. This part typically isn’t filled with excitement but rather a feeling of anxiety, so understanding what to do well ahead of time will help you deal with anxiety and ensure you seal the best deal in just 5 steps.
Step 1: Run the numbers
First things first, you’ll want to make sure you can afford the home before making an offer. Getting pre-approved for a home loan can help you understand the actual amount the bank will be willing to give you based on your credit health and affordability. You should also keep in mind other costs such as the property rates, levies, and homeowners’ insurance. These extra costs can add up to a significant amount to your overall monthly payment.
Step 2: Determine your offer
Once you’re ready to make an offer, you need to determine what price is fair to table on the offer letter. If you’re working with an estate agent, you have the right to ask for a property valuation report to help you see what the current owners paid for the property and what the sales of comparable homes in the area have been. First-time buyers and their agents should reach out to qualified experts like MM Property Solutions to get a free property valuation report and information about how to increase their chances of making a successful offer.
Step 3: Update and prepare your pre-approval letter
Including a pre-approval letter with your offer can help show sellers you’re reliable and able to secure the funds needed to purchase their home. It's as good as an all-cash offer to the seller. Getting this pre-approval certificate is free with MM Property Solutions. It will help you shop with confidence and estate agents will take you seriously when showing your offer to the sellers.
Step 4: Negotiate with the seller
The seller can decide to accept your offer right immediately if they see it as fair, but you should always be prepared to negotiate if they counter your offer. It’s this part of the buying process that gets intense as there is a there’s a lot on the line. The easiest way to make your offer more attractive to the seller is by offering more money, but only use this if there is room to increase your price based on the following two reasons:
- The comparable sales in the area suggest the asking price is lower than other sales pricing and hence you have room to pay more without overpaying on the property.
- If your affordable plus the extra cost allows for an increase in your offer
Step 5: Finalize your offer and begin the home loan process
Once you and the seller have reached an agreement on the selling price, the transfer and registration process can begin. The next step is to apply for your home loan. Throughout the homebuying process, you would want to make sure you have the right advice and get all the benefits of discounts and tangible value available to you. Buying a house can be stressful however planning well ahead and knowing how to take full advantage of the benefits of knowing can be both stress-free and rewarding.